A real estate news company called "Realty Times" recently came out with their list of what's in and what's out for 2007. While some of the items are probably not interesting to most of you, there are some items on the list concerning homes that may be of interest if you're contemplating any major or minor remodeling projects in 2007. And, some items are just interesting as marks of how society is changing. Today I'll let you in on what's in. My next blog entry will cover what's out.

What's In:

Third places or officetels - While there are more and more home offices in our homes, not everyone wants or is able to work there. Sometimes we need a little more social interaction. Sometimes we need a little larger distance between us and the distractions of home, but still without the hours long commute. So there will be more in between places where you'll be able to rent short term offices, cubicles or conference rooms. You can see this locally in Vint Hill where you can rent a cubicle with high speed internet connections for those days you just can't face that long ride into Northern VA or DC.

Upscale garages - These days people are looking for garages with cabinet and storage systems, mini-refrigerators and, of course, fully finished with heating and air conditioning. Now even our cars live better than the homeless!

Two home offices - One isn't enough any more as there are more and more families where both spouses are telecommuting for at least part of the week.

Caving - This is space devoted to one person in the household where they can go and play without being disturbed.  Think crafts room or workshop.

Rejuvenation Rooms - In case you wondered how the other half lived! This is a one-stop space for exercising, meditation, yoga, sauna and fancy steam showers. And, if that's not enough, even the showers are going upscale. There are now waterfall fixtures, programmable temperature and water flow controls are what's "hot" now.

Heated patios, walkways and driveways - Having been born and raised in Minnesota, this has strong appeal to me. I wonder if Dad would have gone for the heated walkway to the barn?!

Snoring Rooms - These are now being offered as options in some new homes as a way of restoring harmony in marriages where the night noise has gotten out of control!

Modular Housing - Modular options and quality are different from what most of us remember. They now encompass everything from a 1200 sq. ft. starter home to an 11,000 square foot monster!

Sustainable Design - This is near and dear to my heart. This is based on three areas; energy conservation, indoor air quality, and resource conservation. My hunch is this will be big with future generations who are growing up much more concious of our impact on the earth.

Structured Wiring - This is now entering the main stream and is becoming a must-have for technology based home buyers. Coax TV cable (RG-6), Category 5E voice and data lines, distributed radio and remote camera security are all wired through the home into multi-outlet boxes called, in the trade, home network centers.

Mixing finishes on kitchen base and wall cabinets. Everything matching is soooo old school! The new look has stained-wood base cabinets and painted wood upper cabinets. This may be an acquired taste!!

Watch this space for news next on what NOT to do to your home in 2007!

Having taken a break for Christmas and for nursing of a very sick pet, it's time to get back in the swing of things in the real estate world!

I know many of you are wondering what the new year will bring for the real estate market. I don't claim to have a crystal ball and make no guarantees. Remember the old saying, "I don't make the news, I just report it!" That's how it works with the market as well.

There was an radio interview with Nicholas Retsinas from Harvard University's Joint Center for Housing Studies. The interview was to ask him about the outlook for 2007. Bear in mind that Mr. Retsinas has been pretty bearish on the markets overall and that no doubt remains true as he looks forward. He does agree that the market appears to have bottomed out. However, he sees it staying at the bottom for most, if not all, of 2007. He sees a year of continued slower sales and no increase in prices. According to his projections there may be a few overheated markets where we'll still see additional small price reductions. But for most of us, it will be status quo in the new year.

I don't know how accurate Mr. Retsinas' forecast is, but I don't see any economic factors or real estate market developments that would tell me he's dead wrong.

So, it's your turn to play prognosticator! What do you project for the year ahead?  Are you bullish or bearish? More sales? Higher prices, lower prices, or more of the same? What will 2007 bring for the No. VA housing market? I look forward to your input!

Three local jurisdictions made moves yesterday to limit growth as a way of controlling the increasingly out of control traffic in our area. Or, in the case of Loudon County and Prince William County in Virginia, they hoped to send a message to the Commonwealth that the time has come for action on the issues of traffic, infrastructure and mass transit.

Loudon County and Prince William County are two of the fastest growing counties in the nation. You'd be hard pressed to find a local who feels good about that.  From the increase in gridlock to the higher taxes to pay for infrastructure, local residents are yelling "enough already"!

The question isn't whether a problem exists. It clearly does. The real question is whether their efforts to slow that growth by delaying future housing development is going to fix it. By itself, these moves won't do much of anything. Passing these pieces of legislation won't take a single car off the road tomorrow or next month or even next year. It may slow down how much additional traffic is added in future years. But with infrastructure already years behind current needs, that's small comfort.

The only way these measures are effective is if they produce action in Richmond to remedy this situation. Odds of that aren't great, despite clear signs in the most recent elections that in Northern Virginia this is a pressing voter issue. But Virginia's delegates don't always agree on either the problem or the solution. Compromise will be needed by all parties and it's yet to be seen whether either political party has the sense to put aside partisan bickering and get something accomplished.

What do you think? Will these latest measures to slow or limit growth make any difference? What are the effects likely to be, intended or otherwise? I look forward to your input!

There have always been homeowners who, for whatever reason, one day have trouble making their mortgage payments. Circumstances change, people lose jobs, medical bills overwhelm or any number of bad things happen. It can happen to the best of us. It's beginning to happen more often in many parts of the country as some of the adjustable rate mortgages suddenly require much larger mortgage payments. And, some buyers who were encouraged to stretch more than they should have to buy a home, will now find themselves in trouble.

If you know you've got a problem, the first thing to do is not panic.  It's so easy to say, so hard to do! Don't panic, but also don't avoid the situation. It's important to intervene early in order to have the best chance of a good outcome for you and your family. Approach your lender immediately when you know you've got an issue. Many of them want to work with you to find a way for you to keep your home if at all possible.  Remember that it's expensive for them to take your home and resell it. And, in this buyer's market it's definitely not easy money for them! Often lenders will try to help you restructure your mortgage. That may mean adding a little to future payments to make up for missed payments. It may even mean they forgive some debt. Your situation and your lender's policy will be unique. But rest assured that there are other options than walking away or declaring bankruptcy.

There are foreclosure counseling services out there, but you should be very careful. Many of them are simply looking to prey on people who already are feeling desperate. HUD (Housing & Urban Development) a federal government department has certified certain homeowner counseling agencies. You can be sure that these agencies are not looking to take advantage of your situation. You can find a list of these agencies on HUD's web site at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

And, if I can ever be of assistance, please don't hesitate to call! There have always been people available to help me when things looked dark. I'm happy to pass that along when I can!

Several times now I've heard a real estate agent or broker say "The media killed this market!"

They're referring to the press accounts saying that the market is dead or that the bubble has burst, or some other exaggeration.

I think this is absurd. The media didn't cause the hot market we experienced in the last few years.  They may have helped feed the frenzy a little! But I'm not buying "The newspaper made me do it!"

Heaven knows there are a vast range of opinions in "the media" at any given time about any topic at all.  And that's just as true with real estate.

And, by the way, the market is not dead, it didn't crash and the bubble didn't burst! We are definitely in the midst of a market correction that is painful for a lot of sellers. Market corrections are a normal part of the cyclical nature of real estate.

Now there are uninformed consumers out there who only perhaps only make use of one source of information.  And, if that source told them that market was crashing, they may have believed it. But the fact that people don't take the time to do the research and get the full story is certainly not the fault of "the media".

I'm also not a big believer in the blame game, ever. Look at the facts, figure out how you got here, what you're going to do about it and move on!

One of the toughest part of trying to buy your first home is finding the funds for a down payment and closing costs. So, I thought it made sense to talk a little bit here about some of the options that are available to help you do that.

First of all, you should know that there are mortgage programs out there that will allow you to finance the entire purchase with no down payment at all. The availability of these programs to you will depend on your credit scores and the lender you choose. But I'd also like to make the point that perhaps people who have no money for either a down payment or closing costs should wait before buying a home. Once you buy that home and don't have a dime to your name, what happens if you have a large, unexpected expenditure? What happens if you unexpectedly lose your job? Life can change suddenly and it can make sense to wait to take on a mortgage commitment until you have some reserves for emergencies.

If you're fortunate enough to have family in a comfortable financial situation, many loan programs allow them to provide you with a gift of cash to help. There are IRS limitations as to the amount they can give you.  And you'll need to disclose to your lender that you're getting the gift. Or, your family may be able to give you a loan to help with the down payment. Again, this will need to be disclosed to the lender. And the amount they can loan you will vary depending on the lender and the loan program.

If you've been working for some time you may have a 401K that you can borrow money from for the purchase of your first home. There are obviously consequences to taking money set aside for your retirement and using that to purchase a home. And you should seriously weigh the pros and cons before doing this.

But I'd also like to suggest a very old fashioned idea, saving money until you have a down payment. Saving money is out of fashion these days! We live in a very materialistic culture that is constantly sending us messages to buy, buy, buy!  But taking a counter-culture approach to this can be very financially rewarding! After all, study after study suggests that all of our stuff is not making us any happier. In fact, the freedom to quit a job you absolutely hate is much more likely to make you happy than that Plasma TV! And there are some organizations that now exist to help you design a life with more financial freedom.

One of those is The Center for a New American Dream. They've got a bumper sticker that says "More Fun, Less Stuff!" I think that could a great motto as you work to build your down payment! Check out their web site for lots of information on how you can find ways to enjoy life more and spend less! http://www.newdream.org  Their newsletter features the slogan "Live Conciously. Buy Wisely. Make A Difference." It's not a message that you're going to hear much from all those credit card companies and retailers hoping to capture your money!

Another great web site for helping you have more with less money is http://www.freecycle.org  Here you can ask local individuals if they have things you need that they'd be willing to part with at no cost. Or, you can get rid of your excess stuff so you don't need as big a house!

However, you go about finding the money to buy your first home, I am a firm believer that buying a home is one of the smartest financial moves you can make! Feel free to share your ideas here on other ways to find that money!

The latest market statistics again show that inventory is decreasing in Fauquier, Culpeper, Rappahannock, Prince William and Fairfax. Those are the counties I've looked at so far, but I'd be surprised if other counties weren't also reflecting this trend. 

Given that the number of sales is still way below last year's rate, which was slightly below the 2004 rate, the inventory is not decreasing because of increasing activity by buyers!  People are taking their homes off the market.

While I'd be more excited about a big jump in the number of buyers out there, this is very good news! The only way to stop some of the downward pressure on prices is for inventory to fall. 

The decline in inventory is not dramatic and so I don't expect to see much immediate impact on the market.  If you're a seller, you're still going to be feeling the pressure on sales prices.  If you're a buyer you've still got lots of negotiating leverage.

But, this is a hint that we might be starting to turn that corner. If inventory continues to decline at its current rate, I still believe it will take until at least next spring to truly start to see a more balanced market.

One thing that could speed that up is decreasing interest rates.  There are hints this week that the Fed is contemplating lowering rates.  And 30-year fixed mortgage rates have been coming down for about six weeks now.  If we continue to see that we may also see more buyers jumping into this market. And that's something every seller is definitely hoping for!

There are a lot of real estate agents and real estate companies working to convince buyers that it's a good time to buy.  And the thing is, I absolutely believe they're right!  But it's easy to say when it's not your money on the line, right?!

So, I'm going to put some skin in the game, so to speak!

Here is my guarantee to you, the buyer.

If you purchase your house with me as your agent, own the house for at least three years, and sell the home with me as your agent...

if you do not net at least the original purchase price of the house and the broker commission, I will work for free to sell your home!

The only caveats are that the house must be in substantially the same or better condition as when you bought it.  (i.e., if it burns down I'm not working for free to sell your pile of ashes!) And, I must still be a licensed REALTOR in the state of Virginia.  If I retire 20 years from now and move out of state I won't be moving back and getting my license just for you! (Although I'll be happy to help you find the right agent!)

It is a good time to buy!  And I'm putting my money where my mouth is! Call me and let's talk about helping you find that next house!

Americans are taking enormous amounts of equity out of their homes. That "giant sucking sound" that Ross Perot heard from south of the border is now the sound of billions of dollars of equity being sucked out and, in many cases, thrown away.

The numbers over the last few years are pretty remarkable:

While some of this equity was taken out for items that have the potential to increase the homes value (35% was for home improvement), much of it did not.  42% was spent on consumer purchases, or, in other words, to buy more stuff!

As we head into a period of time when much of the country is likely to see significantly slower appreciation than we have over the last few years this is worrisome. Add to this the number of homeowners who bought their homes with interest only and/or adjustable rate mortgages and it can get very frightening.

My concern for the overall real estate marketplace is that there are large numbers of foreclosures coming. If that should happen the downward pressure on prices is likely to be more significant than what we've seen with the current market slowdown.

And, of course, in the larger economic picture this would be very bad news for the economy and certainly has the potential for sending us towards recession.

So...if you've been contemplating taking out that home equity loan, think about it again! If you've already got one, time to work on paying it off as soon as possible.

And, if you've been wondering about selling your house and worried about the current market this certainly factors into considerations about timing. While it may seem like a tough time to sell, there are no guarantees it's better a year from now!

Unless you were on another planet this week, you heard an awful lot of bad news about existing home sales.  If you're a seller, or about to be, I'm here to talk you back in off the ledge!

It is certainly true that the documented evidence is now in to support what we've been seeing and feeling locally now for some time.  It is a full-fledged buyers market.  The numbers locally are worse than the national numbers.  But keep in mind that our appreciation was also higher than the national average for the last several years!

So, what should you do if you're home is already on the market?  First of all, reevaluate why you're selling.  There are people who don't need to sell in this market and who should not sell right now.  If you have a choice, I think there's a case to be made for waiting.  Now I'm not talking about waiting a month.  If you have to sell in less than six months you might as well sell now.  I don't think we're going to see a significant improvement in the market for sellers in the near term.

If you're on the market now and no one's looking at your house, it's overpriced.  It doesn't matter what the neighbor's house that wasn't as nice sold for last year.  Prices are falling and they're going to keep falling. You can drop your price now and actually get a buyer and get it sold.  Or you can hold on and eventually take a much steeper discount because prices have fallen further.  It's always your choice on how you price your home. But it's the buyer's choice on whether they bother looking at it and whether or not they put in an offer on it.  If you're overpriced in this market, neither is likely to happen!

If you know you're going to have to put your home on the market in the near future, consider the pricing very carefully.  I would suggest undercutting the price of the most recently sold comparable home by 5%. That's assuming your home is in similar condition.  Discount further if that's not the case.

You should also plan on doing a lot more to get your house ready to show.  It should be free of clutter.  It shouldn't smell like your dogs, cats or birds!  If you have animals you may not notice the smells.  Ask your REALTOR to do a smell test!  Think about hiring a staging professional. Statistics show that homes that are staged sell faster and for more money!

The bottom line is don't panic.  There are still buyers out there.  You just have to compete aggressively to get them.  Go prepare for battle and get in touch if you need reinforcements!